SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN FOUNDATION IN NATURAL AND BUILT ENVIRONMENTS (FNBE)

INTRODUCTION TO BUSINESS [BUS30104]

FINAL PROJECT: CHARITY DRIVE EVENT Lecturer: Mr Chang Jau Ho

Roles Name & ID

Leader Erica Chin Ching 0320460

Accountant Chong Chin Pin 0319595

Members

Esther Chuah Ning Sie 0321422

Tan Jingwei 0320137

TABLE OF CONTENTS

TITLE PAGES

1.0 EXECUTIVE SUMMARY 3

2.0 OBJECTIVES 4

3.0 TARGET MARKET 5-6

4.0 COMPETITION ANALYSIS 7-8

5.0 PRODUCT AND PACKAGING 9

6.0 PRICING 10

7.0 PROMOTION 11-12

8.0 SPONSOR 13

9.0 DISTRIBUTION 14

10.0 GREEN MEASURES 15

11.0 HUMAN RESOURCE PLANNING 16

12.0 EVALUATION OF RESULTS 17

13.0 APPENDIX 18-21

1.0 EXECUTIVE SUMMARY The purpose of this assignment is to raise funds for a charity

organization. This project gives us an opportunity to run a business venture and also to gain experiences about how a business is ran throughout a week.

After group discussions, our team decided to raise funds by selling some fashion accessories and henna. The reasons that we chose to sell fashion accessories are, easy to carry, do not expire, low production cost and easy to achieve our target in a week. Besides selling the accessories, we also provided another services, drawing Henna. This service was not designated to any specific group and they can actually choose their favourite designs. This eventually increased our market range. However, our main target was still Taylor’s University students. The pricing range of the accessories was from RM 2 to RM10 and the Henna-drawing service was from RM 3 to RM 10.

Our booth was set up in front of the Student Life Centre (SLC) in Taylor’s University Lakeside Campus (TULC) from 8th of June to 12th of June 2015. The net profit from this charity drive was directed to an orphanage, Good Samaritan Home (GSH) which has about 30 orphans. It was established in 1999 and is located at 2, Jalan Jelutong, Taman Selatan, 41200 Klang, Selangor. We decided to donate the money to this organization because they are facing land ownership and some financial issues.

A total of RM 2500 was raised by our team.

Figure 1: Flow of Cash

2.0 OBJECTIVES

• Create a public awareness towards orphanage. • To produce and execute a substantial business proposal and plan. • To obtain new skills such as marketing techniques, accounting skills,

production methods and planning strategies. • Raise a minimum of RM2500 and donate to GOOD SAMARITAN HOME by

selling fashion accessories and henna-drawing service. • Gain a minimum of RM 550 from selling the accessories in order to cover

the original cost of the accessories. • Gain a minimum of RM 200 per day from henna-drawing service to

achieve our target.

We chose to support Good Samaritan Home (GSH) by donating all of our profit to them. It is because GSH is currently facing a financial crisis and lacking of volunteers. For more information, you can search this link: http://www.youtube.com/watch?v=NSZoDEc902U

3.0 TARGET MARKET

1. CUSTOMERS AND THEIR BACKGROUNDS 3.1.1 University Students and Staffs

University students and staffs are the main target of our sales. They are expected to provide the highest percentage of our income. After research, it was found that many university students, especially female students, love to do henna with flowers pattern and buy necklaces, while the male students are most likely love to have henna-tattooing with notable sayings and buy pendants. Customers are also more likely to visit our booth when they were informed that all profits will go to charity. Despite the fact that most students do not generate their own source of income, they still have sufficient money in a way that they are willing to buy our products.

3.1.2 Family and Friends

Before we start this business, our targeted customers were mostly family and friends. It was the easiest target since they are someone who we are close to and they will more likely to help us during the time like this. We’ll ask those close friends to bring more friends to come to our booth. At this rate, we are not only targeting our family and friends but others too.

3.2 CUSTOMERS’ WANTS AND NEEDS

a Designs of the pendants and necklace

We bought 6 designs of the pendant so that customers have more choices to make. The necklace can be customized for them if they request to make it longer or shorter. Also, the necklace strings can make into bracelets or anklets. Our pendants and necklace pricing is very reasonable which increase our targeting market.

b. Designs of Henna

For henna, we let the customers to choose their own designs and we’ll do it for them. This can increase the market since the customers will be satisfied with the “free-to-choose” services we give. We also found a few friends to help us out in the booth. This will lower the waiting time for henna drawing. and our pricing for henna is quite reasonable too.

c. CUSTOMERS’ SPENDING POWER

We gave them the freedom to choose their own favourite designs for the pendants and necklace strings. Since our targeting market is university students, our prices for the pendants and necklaces will be cheaper compare to the outside market. Hence, their spending power will increase.Our other targeting markets are family and friends. They’ll tend to buy more as they’ll know that it was for the charity and it can help us to hit our target.

4.0 COMPETITION ANALYSIS

Our competitors included the other 15 groups from our class that were doing charity sales from 8th of June to 12th of June 2015. However, our two main competitors would be: 1. Erica Lo’s group

Erica Lo’s group was selling fashion accessories and DIY T-shirts. Their booth was located on the opposite left of our booth and was the nearest booth to the stairs and staff rooms.

Advantages: Their strategic location near the stairs and staff rooms allows them to approach potential customers first. Their group would be the first sellers to persuade people coming down from the stairs to buy their products or at least collect some donations. It was also found that customers tend to donate more money to them than our team, which affects our income. Their strategies included customize the length of the bracelet for customers and also cheaper prices compare to market outside campus.

Disadvantages: They do not have a variety of products to be sold (only DIY T-shirts and a photo booth). A lot of their income was relied on the donations collected from passer-buyers.

2. Itemize(Taylor’s commercial area)

They were selling fashion accessories in Taylor’s commercial area.

Advantages: They have more choices of fashion accessories. They have more than one kind of products selling. Place at a strategic area in Taylor’s University Lakeside Campus. Targeting market would be students of Taylor’s too. They were there for years which allow to them regular customers.

Disadvantages: Their product is more expensive. They have high operating expenses compare to us.

5.0 PRODUCT AND PACKAGING

5.1 PRODUCT We are selling some fashion accessories such as necklaces, bracelets, pendants, keychains and henna ink for the charity drive. We have seven different designs of pendants.Our customers can choose their favourite design of the pendants and combine with black strings to form a necklace.

The provided designs are cross, key, lock, ring, owl, anchor, Eiffel Tower and owl

Features: The pendants can be attached onto any strings to form a necklace or bracelet. Besides, pendants connect with a ring could make a keychains. Customers can clip it on their bags, pencil cases and clothes.

Benefits: The pendants can act as a form of collection, decoration or accessory. Clipping it on items can act as a form of customization and expression of individual identity. Our Advertising Video Link: https://www.facebook.com/charityGSH/videos/1590924074513783/

5.2 PACKAGING In order to reduce cost and decrease wastage, no packaging was done to our products. Our products were given to customers by hand. The absence of packaging does not affect the attractiveness of our products. This is due to the fact that our customers can straight away wears the fashion accessories

6.0 PRICING

The selling price is more than double of the cost pricing if they are sold in unit, guaranteeing good profit when sold.

Items Cost per unit(RM) Sales per unit(RM)

Necklace strings 0.60 2.00

Pendants 1.00 3.00

Henna paste 4.50 10.00

7.0 PROMOTION

1. SOCIAL NETWORK

A Facebook page was created to promote our business before the charity drive. Customers can inbox us if they have any enquiries or if they would like to place an order. Posts were done on Instagram to increase publicity.

2. POSTERS

An A4 poster was designed using Adobe Photoshop and printed. This is to allow passer-byes to have a quick glance of what we were selling and hoping that they would stop just to have enough time for us to approach them. An additional poster with the words “Last day promotion, Buy one free one” was placed at the booth on Friday to attract more people to approach us on the last day of our charity drive.

3. FACE-TO-FACE CONVERSATION

This is the most effective way of promotion. It is applied when we approach potential customers to explain further about our products and the reason why we were selling them. We realized that face-to-face conversation works best when people are sitting down where they are not in a rush or just taking a break. This allows us extra time to explain briefly to them. Usually, people will either donate or buy our products.

8.0 SPONSOR Through this project from the beginning of preparations to sales week to accounting, we have not approached any individual or organization for any form of sponsorship. Reason being, we decided as a team to break through independently.

However, we did accept contributions in form of cash to be included directly as donations to the charity. Parties that donated:-

i. Family members

ii. Friends

iii.Fellow students in Taylor’s University Campus

Total donations amount: RM 173.00

9.0 DISTRIBUTION We bought our fashion accessories from one of the wholesale supplier near in Petaling Street, Kuala Lumpur. Besides that, we bought the henna paste from the night market in Sri Kembangan. As all the stuffs small and easy to carry, it was not a problem for us to bring it to our booth in front of SLC.

As for our henna drawing service, we found a few partners to help us with it. This can minimize the waiting time. We have three persons who drew henna, hence, we can serve three persons in a time.

We reached out to a few people around the area and introduce them the orphanage. Some of them do donate some money to our booth.

10.0 GREEN MEASURES Our products are produced in an environmentally conscious manner. The products were made by Stainless steel which is not really environmental friendly but long lasting. Our aim is to provide cheap and quality fashion accessories to all consumers so that they won’t dispose it quickly. No waste was produced in the process of producing and selling our products.

Besides that, we did not use any packaging for our product. This allows us to earn maximum profit by cutting costs and reduce waste. Our necklaces look attractive even they do not require any forms of packaging as we pinned up some design on popsicles board to make it more visually-appealing.

During our business drive, we reduce the carbon footprints by carpooling when we move to multiple locations to buy our pendants and henna ink. We do not provide plastic bags for customers. As the majority of distribution is done on foot (throughout campus) therefore the carbon footprint is low.

Electronic gadgets and social media was utilized instead of printing many brochures while promoting our business and thus we really decreasing the carbon footprint by reducing consumption of resources.

11.0 HUMAN RESOURCE PLANNING A clear job scope is important to direct and guide each member to do their respective tasks and workload evenly. The tasks were given to each member according to personal strengths and abilities. Distribution of Tasks:

Organizational Chart:

12.0 EVALUATION OF RESULTS 12.1 PROFIT & LOSS REPORT

Income Statement for Selling Fashion Accessories and Henna-drawing for the Business Charity Event (8.6.2015~12.6.2015)

12.2 DECISION MAKING We made a right choice by choosing henna-drawing as part of our business service. It was low cost and attracted a lot of people to come to our booth. Besides, our fashion accessories were hot selling products too. However, the only decision that we’ve done wrong was the poster. It was not stand out enough. Some of the customers could not even find our booth.

If this event is repeated in the future, we have to make a stand out or bigger poster so that people can see what’s our booth about.

Video link of members’ personal reflection:

https://youtu.be/p2eHgN4qJl8

Revenue RM

Sales Revenue

Less: Cost of Goods Sold Gross profit

Add: - Sponsorships - Donations

Adjusted Gross Profit

1707.00

344.70

1362.30

1000.00 173.00

2535.30

Less: Operating Expenses.

Receipt books Pens Printing

19.60

3.00

12.70

Net profit 2500.00

13.0 APPENDIX 13.1 PHOTOS

13.2 RECEIPT BOOKS

!

13.3 RECEIPTS FROM SUPPLIERS

! !

13.3 TRANSACTIONS RECEIPTS & ORIGINAL RECEIPT FROM GOOD SAMARITAN HOME

!

13.4 Receipt from Good Samaritan Home

gpGood Sam

*_zTari tan H

42, Lorong 1C, Taman Sri Mewah 2,41000 Klang, Selangor Darul Ehsan. Tel/Fax: 03-3372 2289

OFFICIAL RECEIPT

O fn e,oo,,o,,,u-*,No:9802Date: P/t/-

u/hThe Sum of Ringgit Malaysia:

Being payment of suprDrVdonation to children home/ /-'' 4ryn/Ch.erl

"*J*(E Cash QcnequeNo: krL4-